Bank of India, the market's sixth-biggest lender by assets, reported a 41 percent jump in second-quarter net profit on Friday, handily beating analysts' estimates, as its bad loan ratio also narrowed. However, on consolidated basis, the merged entity would have made a loss of Rs 557 crore in the same period last fiscal, as the associate banks had incurred huge losses due to higher slippages after the RBI's asset quality review forcing them to make additional provisions. SBI Chairman Rajnish Kumar, who was named to his position just last month, has said tackling of bad loans would be a key priority, although the bank will not shy away from growth opportunities.
At 14:06 hours IST, the stock price was quoting at Rs 333.10, up Rs 19.35, or 6.17 percent amid high volumes on the BSE.
SBI's total provisioning, including for NPAs, or bad loans, for the quarter in consideration at Rs 18,418 crore were a whopping 87 per cent over the previous quarter's figure of Rs 9,869 crore and also 27 per cent higher over the provisioning in the same period past year. In the corresponding quarter of the previous year, the bank had reported a net profit of Rs 2,538 crore.
Net interest income, the difference between interest earned and expenses, increased by 2.6 per cent from Rs 18,119 crore in Q2FY17 to Rs 18,586 crore in Q2FY18.
Rays' Evan Longoria wins third Golden Glove Award
Jason Heyward (left) is the first Cub to win Gold Gloves in back-to-back seasons since Greg Maddux. He is the first Blue Jays pitcher to earn the honor since RA Dickey won in 2013.
The huge growth was driven by part sale of stake in SBI Life Insurance in a public offering.
Speaking to media, he said the watchlist at the end of September quarter was down to Rs 21,000 crore from Rs 24,000 crore as of the June quarter. Majority might be going to the National Company Law Tribunal as there are very few accounts that can be resolved outside, Kumar said.
Slippages were under control, as gross non-performing assets (GNPA) declined sequentially from Rs 188,068 crore to Rs 186,115 crore at the end of Q2FY18. The bank would fovus on small and micro industries, agriculture and retail. Similarly, the net NPAs rose to 5.43 per cent from 4.19 per cent.
- Pokemon Go Creators to make Harry Potter Augmented Reality Game
- IOS 11.1.1 update now available, includes 'i' autocorrect fix
- AJ Styles beats Jinder Mahal to become WWE Champion
- Jennifer Aniston and Reese Witherspoon To Headline New Apple Original Series
- Rail chaos: Southern drivers end 18-month strike
- Rupert Murdoch twice discussed CNN with AT&T CEO
- Barcelona Back At Table With Liverpool For Philippe Coutinho
- Is the Justice Department trying to force a sale of CNN?
- Hulu App Released for Nintendo Switch
- ESPN Streaming Service Set to Launch in Spring of 2018